subject: The Role Of A Dental Practice Broker - Part 1 Of 2 [print this page] Planning to sell a dental practice? Dont do it alone.
Truth: A dental practice is usually the doctors most valuable and valued property.
Truth: A dentist will generally sell a dental practice only once during his or her professional career.
Considering these facts, many dentists can certainly make an intelligent choice and trust the responsibility of selling their practices to some professional who may have the information and experience to facilitate an excellent transition a dental practice broker. In my experience as both a dental lender and practice broker, these types of dentists normally get a higher value for his or her practices, possess a more amicable relationship with their buyers following the sale, and experience a lot less anxiety and stress during the closing process than their competitors who try the do it yourself approach.
Selling a dental practice isn't similar to selling a vehicle it is a complex approach which stretches far beyond simply finding a buyer and closing on a sale. While some practice entrepreneurs may be able to discover a buyer who is considering acquiring their practice with small difficulties, getting from there to the closing table is the most difficult element of a practice sale. Identifying the market value of the practice, finding the right buyer, bargaining the retail price, drawing the asset purchase contract, formulating the transition plan, negotiating the lease project, and obtaining practice financing are just a few of the key areas where a potential practice sale could be derailed and the experience, expertise, and guidance of the practice broker can be invaluable.
Doctors who are getting ready to sell a dental practice often question us what our role in the process will entail. Here include the main responsibilities of a practice broker:
1.Determine and accomplish the sellers goals for the transition - Every doctor and practice is different it is therefore crucial to the practice broker to spend the time to grasp the sellers individual circumstances and objectives and come up with a transition strategy to meet their needs.
2. Exclusively represent the sellers desire throughout the process - While the practice broker ought to be focused on assembling a win-win transaction for everyone involved, their obligation is to solely represent the sellers interest throughout the transition procedure. Be careful of practice brokers who provide dual representation, as it is unattainable to represent the best interests of the two parties at the same time.
3. Determine a reasonable market price for your practice, maximize the value the seller gets at closing, and then support and articulate the worth to engaged buyers as well as their consultants.
We will investigate the rest of a practice brokers role in the transition procedure in Part 2 of this article.
This article is brought to you by Brannon Moncrief of McLerran & Associates, focusing on How to Sell a Dental Practice.
